Equals Tender Price Inflation Report (London) – Q3 2024

The latest issue of our tender price inflation report is now available to view.

  • Material prices remain stable; insolvency and labour shortages
    continue to be an underlying threat.
  • Stabilisation of wider economic and political factors give reasons for
    optimism.
  • 2024 continues to forecast a retraction of growth; however, recent
    surges in construction activity are promising.
  • Our Tender Price Inflation forecast remains consistent with our Q1
    Inflation Report for 2024, with slight increases for 2025 and 2026.

 

Read the full report here.

Equals attending AHC conference 2024

James Sheppard and Neil Rutherford are attending the Annual Hospitality Conference (AHC) this year, get in touch if you’d like to meet them there.

Equals and LSBU launch a CarbonSmart Bootcamp

We’re thrilled to announce our collaboration with London South Bank University in launching the CarbonSmart Bootcamp, a cutting-edge program designed to train our staff in Whole Life Carbon Assessment (WLCA) and Greenhouse Gas Accounting. This initiative is a critical step in enhancing project performance and contributing to UK net zero 2050 targets. The Bootcamp empowers us to provide expert advice on the carbon impact of material choices right from the early design stages.

Delivered by the School of Engineering, this 15-week Bootcamp offers participants a Level 3 qualification, with a specific focus on the RICS WLCA standards. It is delivered thanks to a GLA Bootcamp grant, providing partial funding. The first cohort begins on August 23rd, with a second session kicking off in November.

Understanding the power of collaboration, this opportunity is open to other construction professionals, particularly SMEs, who are keen to enhance their sustainability expertise.

To learn more or secure your place in the November Bootcamp, email sbitraining@lsbu.ac.uk for more information or reach out to us at mail@equalsconsulting.com

 

Equals shortlisted for apprenticeship award

We’re really proud to have been shortlisted as Employer of the Year in the Multicultural Apprenticeship Awards 2024. It’s tribute to the hard work and dedication of both our apprentices and their managers that we are able to showcase our apprentice programme in such a positive way.

The awards showcase the outstanding work and achievement of apprentices from multicultural backgrounds in Britain and inspires other apprentices to reach their full potential. The awards are organised by Pathway Group, who aim to close the diversity gap in apprenticeships by supporting apprentices and working with employers to make meaningful change.

For more info on the awards visit: https://multiculturalapprenticeshipawards.co.uk/shortlist-2024/

 

Managing Capital works within cultural institutions

The latest issue of the APM Project journal, Summer 2024 features our very own Tony Wilson. Tony was interviewed as part of an article on managing capital works within cultural institutions.

Click here to read the full article

Take a look at our work in the cultural sector 

Time capsule at The Old Vic Backstage extension

While works progress on the exciting new extension ‘Backstage’ for the Old Vic Theatre, the foundations of the new building now include the burial of a time capsule.

Items in the time capsule included a piece of lighting equipment signed by Dame Judi Dench, part of the auditorium’s red velvet seats and famous chandelier, signed show programmes and show props, amongst other things representing the Old Vic’s past and present. Equals are providing project management on the project, designed by Haworth Tompkins.

For further details on the project click here

What key issues are SMEs facing this year?

Equals Director James Sheppard has contributed to an insightful article for the RICS Construction Journal looking at just that, with a particular focus on SME’s harnessing AI.

Click here to read the full article.

Equals attending UKREiiF conference 2024

Caroline Blowers and James Sheppard are attending UKREiiF this year, get in touch if you’d like to meet them there.

Why resolving embodied carbon needn’t cost the earth

Equals Associate Patrick Carter says choosing lower embodied carbon materials doesn’t mean developers need to increase their spending.

 

An alarm call for construction

No-one in the built-environment sector can be in any doubt: the climate emergency is real and it is our collective duty to respond.

The stats are alarming. The World Green Building Council – a global climate-action network set up to promote sustainable practices in the construction industry – says that buildings are responsible for 39% of carbon emissions worldwide: 28% from operational carbon (the energy needed to heat, cool and power them), and the remaining 11% from materials and construction.

 

Bold new vision

In its report ‘Bringing embodied carbon upfront: coordinated action for the building and construction sector to tackle embodied carbon’, the Council outlined a scenario it said must be realised in order to offset the worst impacts of climate change. It wrote:

“By 2030, all new buildings, infrastructure and renovations will have at least 40% less embodied carbon with significant upfront carbon reduction, and all new buildings are net-zero operational carbon. And by 2050, new buildings, infrastructure and renovations will have net-zero embodied carbon, and all buildings, including existing buildings, must be net-zero operational carbon.”

Laudable ambitions certainly, but the problem is that, historically, the industry’s main focus has been on operational carbon (albeit to much success). If we are to treat the climate emergency with the urgency it so obviously requires, we must address the issue of embodied carbon with the same vigour.

 

What is embodied carbon?

The term is used to describe the carbon-dioxide emissions associated with materials and construction processes throughout the life cycle of a building. It encompasses raw material extraction, manufacturing processes, transportation, assembly, use, deconstruction or demolition, and end-of life-stages.

 

Ready for the challenge

At Equals, we recognise that as project and cost managers, the onus is on us to steer strategic decision-making for our clients and project team as we work together to reach these targets. This includes finding innovative solutions to embodied carbon – one of the biggest challenges to industry de-carbonisation at this time.

An informed viewpoint is essential if we are to provide our clients with strategic guidance and support. To this aim, we have undertaken an analysis of materials commonly specified in construction projects, comparing their relative costs with those of alternative materials that have a lower embodied carbon footprint.

To do this, we relied on embodied carbon ratings provided by the London Energy Transformation Initiative (LETI), which comprises 800-plus built- environment professionals working to help the capital reach net-zero. The results showed that, in many cases, lower carbon alternatives either cost the same or were more cost-effective than other commonly specified materials.

 

Comparative cost analysis: the key findings

The graphs below show how commonly used materials compare in terms of relative cost and also their embodied carbon footprint.*

Right time, right place

While our findings are good news for your profit- and-loss sheet and the planet, timing is also a key factor. Making the right choices early in the life of a project will have the biggest impact and help you to procure with confidence later on.

The Product stage (A1-A3) of a project (raw material supply, transport and manufacturing) accounts for the largest proportion (c. 55%) of embodied carbon over the life of a building. Consequently these are the emissions that should be treated as a priority.

In addition, because off-site manufacturing also contributes to a building’s embodied carbon, where you source materials is crucial. Look into a supplier’s carbon credentials before selecting them, and obviously the more local they are, the lower the likely impact of transportation.

Simply by making informed decisions on material selection at the optimum time, it is estimated that embodied carbon can be reduced by up to 20% in the short term, with no additional costs.

 

5 quick wins for reducing embodied carbon

  • Re-use buildings/materials and minimise demolition
  • Adopt structurally efficient systems and grids
  • Target lean design, and build light
  • Avoid over-specification
  • Procure local and low-carbon materials

 

Equals’ key role in decision-making

As construction professionals, Equals can meaningfully inform material choices by establishing project brief targets and ensuring the implementation of an embodied carbon reduction strategy.

This would include costed design studies and market-testing for optioneering and optimising the selection of component materials. We can also advise on the procurement of consultants and contractors who have a proven track record of reducing embodied carbon.

For further information contact Patrick Carter or Neil O’Connell

 

Equals Tender Price Inflation Report (London) – Q1 2024

The latest issue of our tender price inflation report is now available to view.

  • Negative growth is anticipated for 2024, largely driven by the dramatic fall in new housing output.
  • Labour shortages are still prevalent, and the volume of insolvencies remain a risk.
  • The stabilisation of material costs and slowing of wider economic inflation provides reason for cautious optimism.
  • Tender Price Inflation forecasts anticipate a reduction of the inflation rate, compared to 2023.

 

Read the full report here.